Latvia’s decision to assess a tax on gambling win has led some players to go elsewhere according to international operator Storm International, which opened its Shangri La Casino in Riga in November 2017.
According to Storm officials, Latvia is now less attractive to international VIPs.
“Our strategic advantage, the experience we have in attracting respectable players by providing them with the necessary services, has been undermined by changes in the tax on winnings,” said SL Casino Riga Director Andrei Ivankin. “In some developed countries, such as the USA, a similar tax does exist, but, firstly, it applies only to U.S. residents, and secondly, the tax is not imposed on every win, it is calculated for a specific reporting period, for example a whole year. Guests at the casino not only win, but also lose. Therefore, it is logical to withhold tax from individuals not from any specific winnings, but from the net income from gambling over a certain period of time.”
When new tax system took place, management at SL Riga noticed a decline in the number of foreign players visiting Latvia for recreation and entertainment. The domino effect has also affected tourism in general, with less money being spent on transportation, hotels, restaurants, clubs, retail stores and other segments—all of which means less revenues for the government.
